GOVERNMENT OF INDIA

NORTH EASTERN COUNCIL SECRETARIAT

NONGRIM HILLS :: SHILLONG – 793003

No. NEC/T/ILFS/2004 (Part) Dated 14th November, 2007.

To

The Advisor,
IL&FS, Infrastructure Development Corporation Limited,
Mezanine Floor, Hotel Brahmaputra Ashok,
M.G. Road, Panbazar,
Guwahati – 781 001 (Assam)

Sub: Proposal for Upgradation of Dhodar-Ali Road on Public Private

Partnership (PPP)
Ref: Your office letter dated 25th September, 2007.

1. In this connection it is brought out that NEC is only funding agency and not
an implementing agency. The implementation of the projects is being done by the State
PWDs. It would therefore be appropriate that implementing agencies are made aware of
the proposal made by you.

2. Notwithstanding the above, representative from the State Governments are

being requested to come to NEC for a presentation b IL&FS may explain their proposal to
them for further action.

It is therefore requested that a presentation be arranged at NEC on 04th

December, 2007 at 1600 hours at the Conference Hall.

( K. Haridosss )
Executive Engineer (T&C)

Copy to:

1. The Chief Engineer, NEC, PWD, A copy of the IL&FS proposal

Chandmari, Guwahati -3. is sent herewith. You are
2. Engineering in Chief, PWD, requested to forward your
Nagaland, Kohima. views by 25th November’ 07.
3. Chief Engineer PWD, Eastern Zone, Please also make it convenient
PWD, Itanagar. to attend the meeting /
presentation.

( K. Haridosss )
Executive Engineer (T&C)
 Concept Note
on
Dhodar Ali Road

September 2007

Infrastructure Development Corporation

UG Floor, 2A, Mahindra Towers, Bhikajir Cama Place, New Delhi 110 066
 Tables of Contents

I. Introduction
1.1 Background 1
1.2 Dhodar-Ali Road 1
II. The Proposal
2.1 Alignment of the Road 3
2.1.1 Dhodar-Ali Road within Golghat District 3
2.1.2 Dhodar-Ali Road within Jorhat District 4
2.1.3 Dhodar-Ali Road within Sibsagar District 6
2.2 Improvement Work by NEC and UNESCO 7
2.2.1 Bridge Work 8
2.2.2 Boulder Protection Work 9
2.2.3 Road Side Drain cum Footpath 10
III. Benefits of the Improved Dhodar-Ali Road 10
3.1 Saving in Travel Time 10
3.2 Economic Integration in Project Influence Area 10
3.3 Safety 10
IV Issues in Improvement of Dhodar-Ali Road 11
4.1 Environmental Issues 11
4.2 Transfer of Land 11
4.3 Feasibility Study 11
Annexure I
Terms of REFERENCE 12
I. Infrastructure Leasing and Financial Services (ILFS) 12
Organisations Background
II. IL&FS Group Road Sector Experience 13
Annexure IV: State Specific Road Companies
(I) Road Development Corporation of Rajasthan
(II) Tamil Nadu Road Development Company

List of Figures
Figure 1: Location of Dhodar-Ali Road
Figure 2: Alignment of the Proposed Road in Golaghat District
Figure 3: Alignment of the Proposed Road in Jorhat District
Figure 4: Alignment of the Proposed Road in Sibsagar District
Figure 5: Alignment of the Proposed Road in Dibrugarh Section
 1

I. Introduction
1.1 Background

Assam is situated in North East Region of India, with its capital at Dispur, a
suburb city near Guwahati. Assam is surrounded by Arunachal Pradesh,
Nagaland, Meghalaya, Manipur, Mizoram and Tripura. These states are
connected to rest of India through a narrow strip called Chicken’s Neck. Assam
is also connected to two countries Bhutan and Bangladesh.

Industrial infrastructure already exists in Assam. There are four oil refineries,
several large and medium sector manufacturing industries that includes sugar
mills, textile spinning units and processing houses, cement plants and fertilizer
units. Apart from these Assam produces tea, petroleum resources, silk and is rich
in bio diversity.

The Economy of Assam on the eve of the Eleventh Five Year Plan is in a better
position than ever before. The growth rate of economy as compared to Ninth
Five Year Plan has shown a continuously increasing trend over the years of the
Tenth Five Year Plan. The annual average growth rate of GSDP in Assam as per
advance estimate during 2005-06 is 6.14% as against Ninth Plan growth rate of
2.73%. The State is expecting an average annual growth rate of 5.59% of GSDP
during the Tenth Five Year Plan against targeted growth rate of 6.2% of the
Tenth Plan.

1.2 Dhodar-Ali Road

The project road Dhodar-Ali which at present has the status of State Highway
under Assam Public Works Department (PWD) starts from km 409 of NH – 37 at
Kamargaon and passes through the districts of Golaghat, Jorhat, Sibsagar and end
at Joypur in the Dibrugarh district. The total length of Dhodar-Ali Road is 212
Km. Along the Dhodar-Ali particularly in Golaghat, Jorhat and Sibsagar Distirct
there are rivers which are running parallel to the road. These are Dhansiri,
Kakodong, Puthnodi and Suffrai rivers.

Enroute Dhodar-Ali links various cities/ regions of industrial, tourism,

educational, religious and administrative importance namely Golaghat, Titabor,
Mariani, Amguri, Nazira, Simulguri, Sapekheti and Namrup, and services as in
important link to places like Wokha District, Tuli, Kokokchung, Nagnimora and
Mon in Nagaland, Kanubari, Bimalpur, Khonsa in Arunachal Pradesh, Tinsukia,
Digboi oil town, Madhapur Tin-Ali via Lakhipathar in Assam.

The traffic on Dhodar-Ali (Project Road) stretch is growing quite rapidly due to
growth of Assam an also due to rapid economic development of the influence
area. Apart from the growth, development of Dhodar-Ali and heritage site
facilitates the rapid renewal of the socio-cultural linkage among various tribes.
 2

North Eastern Council (NEC) is a nodal agency of Government of India for

planning, implementing and monitoring various development activities in North
Eastern States. NEC had considered the importance of Dhodar-Ali and had taken
up proposal for improvement of road geometrics. NEC is contemplating to
enhance the traffic capacity and safety for efficient transshipment of goods as
well as passenger traffic on this State Highway section.

Realizing this, NEC has taken up this stretch for widening to intermediate lanes.

The road pavement condition of Dhodar-Ali is really bad. The entire corridor is
single lane facility and has to be upgraded to Two lane on suitable PPP format.

The alignment of the project road and its surrounding road network along with
major towns and rivers is shown in Figure 1.

Figure 1 : Location of Dhodhar-Ali Road

 3

II. The Proposal

It is proposed to upgrade the existing road from single lane to Two lane on
suitable PPP format.

2.1 Alignment of the Road

The corridor commences at Kamargaon, passes via Golaghat – Titabor – Mariani

– Amguri – Nazira – Simulguri – Sonari – Sapekhati – Namrup and then finally
terminae at the Joypur in Dibrugarh District. Table 1 shows various townships in
the project road their respective districts.

Table 1 : Alignment of the Dhodar-Ali Road

Sl. Length of road
Name of Township District
No. (Km)
1. Kamargaon
Golaghat 42
2. Golaghat
3. Titabor
Jorhat 51
4. Mariani
5. Amguri
6. Nazira
7. Simulguri Sibsagar 104
8. Sonari
9. Sapekhati
10. Namrup
Dibrugarh 15
11. Joypur

The details of the alignment are as given below:

2.1.1 Dhodar-Ali Road within Golaghat district

Length of the project road in Golaghat district is 42 km and within Golaghat

district, Dhodar-Ali road starts at Km 409 of NH – 37 at Kamargaon and passes
through Golaghat.

● Kamargaon is the entry point to Golaghat district, Kaziranga National

Park, Numaligarh Refinery Ltd. and Tea estates in surrounding areas.
● Goalghat is a district Head Quarter and has Tea Gardens in the
surrounding areas. It is located at 28 km point of Dhodar-Ali.
NEC has taken up the proposal for improvement of road geometrics and
strengthening of the road phase for Dhodar-Ali road and 37 km out of 42 km in
Golaghat district is already been taken up for the improvement. So far, 29 km out
of 37 km of the work is completed. The tentative alignment of the road is
presented in Figure 2.
 4

Figure 2 : Alignment of the Proposed Road in Golaghat District.

2.1.2 Dhodar-Alig Road within Jorhat District

Length of the project road in Jorhat district is 51 km. It passes through the
immediate vicinity of Titabor and Mariani.
● Titabor is famous for plywood factories, Tea Gardens, Seri culture
centre, Regional Rice research centre etc.
● Mariani which is at 67 km point of Dhodar-Ali is a commercial town and
has a Railway Junction, Saw mills, Plywood factories, Tea Gardens etc.
NEC has taken 34 km out of 51 km in Jorhat district for improvement. So far, 14
km out of 34 km has been completed by NEC.
 5

The alignment of the road in Jorhat District is shown in Figure 3.

Figure 3 : Alignment of the Proposed Road at Jorhat District

2.1.3 Dhodar-Ali Road within Sibsagar district

Length of the project road in Sibsagar district is 104 km. It passes through the
immediate vicinity of Amguri, Nazira, Simulguri, Sonari and Sapekhati.
● Amguri has a thermal power plant (NEEPCO), Tuli paper Mill and Tea
Estates in the area.
● Nazira is a sub-divisional headquarter and regional headquarter of
ONGC Ltd.
● Simulguri is a commercial town and has a railway junction.
● Sonari has a commercial township and Tea Estates.
● Sapekhati has a railway station.
NEC has taken 29 km out of 104 km in Sibsagar district for improvement. So far,
10 km out of 29 km has been completed by NEC.
The alignment of the proposed road in Sibsagar District is shown in Figure 4.
 6

Figure 4 : Alignment of the Proposed Road at Sibsagar District

2.1.4 Dhodar-Ali Road within Dibrugarh district

Length of the project road in Dibrugarh district is 104 km. It passes through
immediate vicinity of Namrup and Joypur.
● Namrup has a thermal power plant, Fertilizer Plant of HFC Ltd. and
Assam Petrochemical complex.
● Joypur is famous for the Tea Gardens, Plywood Factories and Collieries.
Dhodar-Ali road ends at LBDT road at Joypur about 45 km away from
Tinsukia, the major industrial town of Assam and 60 km away from
Dibrugarh town.
The alignment of the proposed road in Dibrugarh District is shown in Figure 5.
 7

Figure : 5 The alignment of the proposed road in Dibrugarh Section

2.2 Improvement Work by NEC and UNESCO

As mentioned earlier, NEC had considered the importance of Dhodar-Ali and had
taken up proposal for improvement of road geometrics. Table 2 shows the
portion of work completed and in progress by NEC.

Table 2 : Improvement work by NEC

Portion of
Sl. Portion of Dhodar-Ali Dhodar-Ali Work in
Districts
No. taken by NEC (Km) completed by Progress (Km)
NEC (Km)
1 Golaghat 37 29 8
2 Jorhat 34 14 20
3 Sibsagar 29 10 19
4 Dibrugarh 0 0 0
Total 100 53 47

So far, 53 km of length has been completed by NEC and rest 47 km is still in

progress. The Table 3 below shows the portion of work taken by NEC and
UNESCO.
 8

Portion of Dhodar- Portion of Dhodar-Ali

Sl. Length in the
Districts Ali taken by NEC taken by UNESCO
No. District
(Km) (Km)
1. Golaghat 42 37 5
2. Jorhat 51 34 17
3. Sibsagar 104 29 75
4. Dibrugarh 15 0 15
Total 212 100 112

2.2.1 Bridge Work

There are 40 numbers of Bridges on the entire 212 km of Dhodar-Ali road. There
are 5 Bridges in Golaghat District, 12 in Jorhat District, 22 in Sibsagar District
and 1 in Dibrugarh District. Table 4 below shows the type of Existing and
Proposed Bridges on the project road.
Table 4 : Types of Existing and Proposed Bridges
Length of
Type of
Sl. Bridge the
District Type of Existing Bridge Proposed
No. Number Bridge
Bridge
(m)
Brick masonry with RCC
1 15/1 RCC 140.9
Slab single lane Bridge
Brick masonry with RCC
2 17/3 RCC 8.53
Slab single lane Bridge
Brick masonry with RCC
3 Golaghat 18/4 RCC 13.7
Slab single lane Bridge
Brick masonry with RCC
4 23/1 RCC 10.67
Slab single lane Bridge
Brick masonry with RCC
5 25/5 RCC 19.8
Slab single lane Bridge
Brick masonry with RCC
6 Jorhat 43/1 RCC 8.1
Slab single lane Bridge
Brick masonry with RCC
7 49/2 RCC 14.7
Slab single lane Bridge
Brick masonry with RCC
8 62/1 RCC 10
Slab single lane Bridge
Brick masonry with RCC
9 64/1 RCC 13
Slab single lane Bridge
10 64/1 RCC Double lane Bridge RCC 13.7
Brick masonry
Brick masonry with RCC with RCC Slab
11 68/1 10.15
Slab single lane Bridge single lane
bridge
Brick masonry
Brick masonry with RCC with RCC Slab
12 69/2 10.15
Slab single lane Bridge single lane
Bridge
Brick masonry
Brick masonry with RCC with RCC Slab
13 72/1 15
Slab single lane Bridge single lane
Bridge
 9

Length of
Type of
Sl. Bridge the
District Type of Existing Bridge Proposed
No. Number Bridge
Bridge
(m)
14 74/1 SPT SPT 16.6
15 74/2 SPT SPT 12
Brick Abutment
Brick Abutment Bailey
16 82/1 Bailey Single 26.5
Single Lane Bridge
Jorhat Lane Bridge
Brick Abutment
Brick masonry with RCC
17 85/1 Bailey Single 28.3
Slab single lane Bridge
Lane Bridge
18 94/3 RCC Double lane Bridge 86
19 102/3 SPT SPT 25
20 104/1 SPT SPT 15
21 114/1 SPT SPT 35.5
22 116/1 SPT SPT 8.4
Steel Bride
23 118/1 Steel Bridge Single Lane 11.6
Single Lane
24 121/1 RCC Double lane Bridge
Ancient Stone Arch Ancient Stone
25 127/1 33
Bridge Arch Bridge
Screw Pile
Screw Pile Bridge Single
26 129/1 Bridge Single 10.9
Lane
Lane
27 137/2 SPT SPT 8.4
Sibsagar
RCC Bridge under
28 144/2 49
construction
29 150/1 SPT 10
30 152/1 Screw Pile Bridge 70.88
31 156/2 Screw Pile Bridge SPT Bridge 13
32 159/1 Screw Pile Bridge SPT Bridge 12
33 159/2 Screw Pile Bridge SPT Bridge 40
34 163/1 Screw Pile Bridge SPT Bridge 13
35 163/2 Screw Pile Bridge SPT Bridge 9.3
36 172/2 Screw Pile Bridge SPT Bridge 12.6
37 174/2 Screw Pile Bridge SPT Bridge 19.6
38 177/2 Screw Pile Bridge SPT Bridge 16
Oil Bailey
39 182/2 Oil Bailey Bridge 21
Bridge
Double lane
40 Dibrugarh 198/3 Double lane RCC Bridge 100
RCC Bridge

2.2.2 Boulder Protection Work

Along the Dhodar-Ali particularly in Golaghat, Jorhat and Sibsagar District there
are rives which are running parallel to the road. These are Dhansari, Kakodong,
Puthinodi and Suffrai Rivers. Road embankment protection work is required in
areas where the road is running parallel to the rivers.
 10

2.2.3 Road Side Drain cum Footpath

About 200 m in Golaghat, 4000 m each in Amguri, Nazira, Simulguri and Sonari
and 2000 m in Namrup town road side drain cum footpath are to be provided.
III. Benefits of the Improved Dhodar-Ali Road
The up-gradation of the Dhodar-Ali Road from Golaghat to Joypur will have the
following benefits:
3.1 Saving in Travel Time
As mentioned earlier that the present condition of the road including most
of the bridges is quite bad, the Upgradation of the project road will translate
into huge travel time savings for the commuters.
3.2 Economic Integration in Project Influence Area
Development of new infrastructure facilities in the project influence area
would generate potentially large number of additional trips, which use the
project road. Development initiatives in the Project Influence Area will not
only give rise to additional traffic movement but also accentuate the need
for greater economic integration of the project influence area.
3.3 Safety
With improved condition of the road and better safety measures, it is
assumed that there wil be less number of accidents and commuters will be
having safe journey along this road.
 11

IV. Issues in Improvement of Dhodar-Ali Road

In spite of the obvious benefits of the proposed road, there are certain issues
which need to be sorted out before going ahead. These issues are listed below:
4.1 Environmental Issues
The alignment passes through some very heavy forest area. The issue of the
environmental clearances will have to be resolved.
4.2 Transfer of Land
It is extremely important that the land required for the widening be acquired
before the concession is given to the private developer. Land Acquisition
will carried out by Government of Assam and then the land will be
transferred to NEC before the grant of concession. It is also important to
carry out the land acquisition for any real estate / tourism project that may
be given to the developer as sweetener.
4.3 Feasibility Study
The alignment proposed in this paper is only indicative. Moreover, it is
proposed to construct the road on only one side (left) of the canal. However,
it is extremely important to carry out a techno-economic study for the
project to fix up alignment and other road geometrics of the proposed
corridor.
 12

Annexure I
Terms of REFERENCE
Objective of the Assignment
The objective of the assignment is the Upgradation of Dhodar-Ali Road which
will not only improve connectivity in Upper Assam but also serve the through
traffic from Arunachal Pradesh and Nagaland.
Broad Scope of Work:
IIDC envisages following scope of work for the Project which shall inter alia:
(a) Assist the NEC in structuring the development and Upgradation of Dhodar-
Ali road stretches and operation and maintenance of these projects through
private sector participation.
(b) Examine the various project financing strategies that will optimize the
extent of cross-subsidy that may be required for the project and the
concession. It will entail the identification of relevant securitization
strategies for the revenue generate through various activities during the
project cycle.
(c) Shall prepare on behalf of NEC all the necessary documentation, including
lease agreement and O&M agreement.
(d) Assist in developing the assignment up to the stage of technical close and
award to the private sector developer (PSD)/EPC Contractor. For this
purpose, IIDC shall undertake the project development activities for the
assignment in phases as outlined below:
(i) Phase I : Preparation of business Plan for Dhodar-Ali Road for
development of Public Private Partnership Basis.
(ii) Phase II : Financing Plan and Bid process management for selecting
the PSD/EPC Contractor.
(e) for each of the phases outlined in (d) above undertake its responsibilities in
a manner and form as enunciated below:
Phase I : Development of Business Plan:
IIDC shall prepare a business plan for both the projects, to ascertain the viability
of development with private sector participation. This shall, entail the following:
● Detailed Reconnaissance Survey for the proposed alignments of Dhodar-
Ali Road.
● Selection of technical consultant to carry out techno-commercial
feasibility study including topographic surveys, traffic studies including
projection, pavement study, economic and financial analysis, social &
environment impact assessment study, re-settlement and rehabilitation
 13

plan, rehabilitation and re-construction of cross-drainage structures,

BOQ, risk assessment, market assessments etc. as may be required for
obtaining necessary clearances.
● Selection legal consultant in order to review the legal and regulatory
framework/s for project implementation.
● Discussion with various institutions and interested partners willing to
participate in the development of the road on Private Sector Participation
basis in the form of a “willingness to pay” survey.
● Formulation of Integrated Improvement and Maintenance Works
Contract Framework for PSD/EPC Contractor linking cash flows with
the performance or the output based.
● Revenue assessments, cash-flow disbursement schedule and evolve
revenue securitization methods.
● Developing strategies for selection of entrepreneurs for undertaking
construction, operation and maintenance and right of way protection.
● Formulation of measures related to the type of land uses along the
proposed road so as to regulate the ribbon development in the abutting
land.
● Business Plan and Project Structuring: The proposed business model
would elaborate the appropriate form of privatization model by assessing
the key factors that will enable successful implementation of the project.
Business Plan will further provide for
● Project Risk Assessment
● List of Government Approvals required for the project
● Estimation of Government Contribution if required

Phase-II: Implementation Plan (including financing aspect and Bid process

management)
In this stage, IIDC proposes 3 separate options for successful
implementation of these two road projects:

Option I:
Payment on an Annuity basis followed by Tolling: A private developer
will be selected to develop the projects on annuity format. In this case the
private developer will be handed over the project road. The private
developer will carry out the design, construction finance, and operation &
maintenance for the facility for a fixed period. The private developer will be
paid a fixed amount (to be decided upfront on the basis of the financial
bids) every year (or quarter) by NEC. NEC may recover parts of this
amount by tolling / advertisement etc. or may decide to absorb this cost.
The road will be handed over to NEC after a fixed period.
 14

Option II:
Bid out the project in full to a Private Developer to run on a BOT basis for a
certain number of years (to be decided through discussion with the NEC or
on the basis of financial bids). In this case also case the private developer
will be handed over the project road for carrying out the design,
construction finance and operation & management for the facility for a
fixed period. However, the private developer will recover its cost through
tolling/advertisement revenue. In order to meet the cost of development and
O&M, NEC may have to give the developer VGF or real estate
development rights. Additionally, the developer can be given the rights of
tolling for the entire road of 212 Km. instead of merely 112 Km for which
he will carry out the improvements.

In this case IIDC may carry out the entire Bid Process Management. The
detail of the bid strategy is a illustrated below:

Pre-qualification (this part is common to both Option I & Option II):

● Formulation of pre-qualification criteria based on desk research and
collating secondary information about real estate developers.
● Release of advertisement inviting expression of interest.
● Evaluation of expressions of interest and short-listing of eligible and
interested bidders.
● Shortly after creation of the shortlist, IIDC shall hold a Developers’
Conference to understand bidders’ concerns and incorporate their
suggestions while preparation of the Request for Proposal.

Bid Solicitation and Evaluation:

IIDC manage bid solicitation and evaluation process, which shall comprise
of the following.
● Formulation of the bid criteria in discussion with NEC.
● Commercial agreements(s) for Proposal (RFP) document comprising
of Project information, Bid procedures, development controls and
technical specifications and the commercial agreements(s), standard
bidding formats, credential requirements.
● Release of RFP to the shortlisted bidders’.
● IIDC shall, if necessary, organize a Pre bid Conference to clarify any
queries that bidders may have on the RFP in presence of members
from NEC.
● Evaluation of technical proposals.
● After evaluation of the technical proposal, the financial evaluation
shall be carried out and final ranking shall be obtained.
 15

Contract documentation:
IIDC shall be responsible for preparing the following project related
documents:
● Land lease agreement, to be signed between the private sector
developer and NEC.
● Construction agreement.
● O&M agreement between O&M operator and NEC.

Option III.
IIDC will form a 50:50 Special Purpose Company (SPC) along with the NEC. A
Proejct Development Fund may be created through equal contribution from both
the parties. This fund would form the equity of the JV company. IL&FS may
support the SPC by raising finance in the form of debt. Any Viability Gap
funding required for successful implementation of the project will be filled
through Subordinate Loan from NEC to the SPC. The SPC will bid the different
stages of the project to EPC contractors through an transparent process and these
EPC contractors will execute the work.

The various stages of this option will comprise:

Strategy for pre-qualification and preparation of necessary documentation: This

task may include bid documentation, negotiations, and selection of PSD/EPC
contractor for implementation of the assignment. In the case of an EPC
contractor, Integrated Improvement and Maintenance Works Contract
Framework has to be developed.

After completion of the project, the SPC will retain the right to recover their
expenses from tolling/advertisements etc.

Note:
a. The Financial consideration of IIDC will be decided after choosing
the right Option from the three different Options mentioned above.
b. At all stages of Project Development process (in Option I, Option II
and Option III) the private developer / EPC Contractor/ consultants
fro various activities within the overall plan will be selected through a
transparent bidding process.

Implementation Framework:
● NEC shall entrust the project development exercise to IIDC as a
Project Development and Promotion Partner (PDPP). IIDC shall carry
the process of project development forward.
● NEC shall constitute a Project Development Committee (PDC) for
granting timely approvals required for undertaking project
development activities including technical study and project
 16

documentation. This would act as a decision making body for taking

process forward for the project.
● The Technical and Legal consultant shall be appointed through limited
circulation of RFP to the reputed consultants. The selection shall be
done on the basis of QCBS system of selection. Thus, the procurement
process shall ensure time bound and cost effective procurement of
quality consultants. IIDC shall procure the technical consultant for
carrying out the study for the project.
● All the cost incurred towards project development like fee of technical
and legal consultant, and professional fee of IIDC shall be borne by
NEC. However, IIDC shall assist in procurement of the consultant and
supervise the study.
● All the expenses towards Project Development which are made NEC
shall be recovered from the successful bidders at the time of signing of
the contracts.

Fees and Payment Structure

IIDC shall be entitled to receive the following fees for the services rendered
by it towards the project development fee
(a) Professional Fees
IIDC will be entitled to receive, a payment of 2.5 lacs per month (plus
applicable service tax) for the project development period, subject to a
maximum of 24 months. The fees are inclusive of out of pocket expenses
comprising of travel, boarding & lodging, local travel and communications.

(b) Success Fee

IIDC shall be entitled to receive a Success Fee, after the successful
procurement of the developer. The success fee shall be 1% of the Landed
Project Cost and shall be directly paid by the successful bidder to IIDC.

The definition of Landed Project Cost is given at Annexure 4

Activity Schedule
It is estimated that the aforementioned process of Project Development on
PPP basis is expected to taken around 24 months, subject to provision of all
relevant data, expeditious approvals and clearances from Government of
Assam. The detailed activity schedule is as given below:
 17

Award of work by NEC to IIDC D

Selection of Technical Consultants D+1 M
Completion of Feasibility Study Report by the Technical Consultant D+6 M
RFQ process D+10 M
Completion of DPR by the Technical Consultant D+12 M
Discussions and finalization of bidding parameters D+14 M
Issue of RFP D+15 M
Evaluation of Bids and Selection of preferred Bidder D+17 M
Negotiations & signing of concession agreement D+18 M
Financial Close of the preferred bidder D+24 M

D: denotes of signing of MoA

M: indicates Months
Time lines mentioned above are indicative and subject to expeditious
approvals and clearance from Project Development Committee (PDC).

Annexure II
Landed Project Cost
Landed Project Cost may be fined as follows:
a) The costs incurred for carrying out Project related activities such as
formulation, development, design, engineering, construction, operation,
management consultancy, etc.
b) Total capital outlay on the Project, which includes, material, labour
transport, consumables, testing, commissioning overheads, sundries,
contingencies, insurance, supervision, etc. IT shall also include Government
grant (VGF or under any other format).
c) Any fees (including professional and success fees), commissions, levies and
taxes.
d) Expenses related to fund mobilization such as fees for financial service,
brokerage, interest, commission, publicity expenses, etc.
e) Interest during construction.
f) Project Cost of Real Estate Component, including land cost (if any)
g) Environment and Social Impact Mitigation Cost as per the requirement of
approvals.

Annexure III

1. Infrastructure Leasing and Financial Services (ILFS) Organisation

Background

IL&FS is one of the largest Financial Institutions (FIs) in the country, playing a
catalytic role in the development of infrastructure projects across the country on
PPP basis, and complementary array of financial services. IL&FS was promoted
by the Unit Trust of India (UTI), Central Bank of India and Housing
Development Finance Corporation (HDFC) in 1987. Apart from the original
 18

promoters, the current shareholders include the State Bank of India, Orix
Corporation (Japan), International Finance Corporation (IFC) Washington, Credit
Commercial de France (CCF) and Indivest Pte Limited (an affiliate of Govt. of
Singapore Investment Corporation).

IL&FS Infrastructure Development Corporation Limited (IIDC), a wholly owned

subsidiary, is the infrastructure development arm of IL&FS. IIDC has been
established to domicile the extensive portfolio of infrastructure project
development activities of IL&FS and to create other synergistic opportunities
with State and Central Government/Public sector agencies.

IIDC has experience of working with the Central and a number of State
Governments, playing a significant role in the evolution of project development
from conceptualization to commissioning, formulating new policy paradigms,
legal frameworks, regulatory structures, new financial processes and instruments
aimed at delivery of commercialized projects in various infrastructure sectors
ranging from transportation, water & sanitation, housing, industrial
infrastructure, social infrastructure etc. We have an experienced professional
team with diverse skill sets and core competence profile mapped to its
requirements in the area of technical, financial, legal, risk management,
environment and social management and process management.

Presently IIDC is working with the Governments of Punjab, Kerala, Andhra

Pradesh, Jharkhand, Chhattisgarh, West Bengal, Assam, Goa, Meghalaya,
Mizoram etc, through either Project Development and Promotion Partnership
(PDPP) arrangement or Joint Venture Company or exclusive MOAs for
implementation of infrastructure projects with Private Sector Participation. IIDC
is also associated with the various Central Government Ministries and
Departments like Ministry of Commerce and Industries, Ministry of Urban
Affairs, Department of Company Affairs etc.

We have also been associated with Ministry of Home Affairs for the
Development of four integrated Check Post at Indo Nepal Border.

Our parent, IL&FS also ahs a PDPP arrangement with the Government of
Tripura, and joint venture companies with the Governments of Rajasthan
(PDCOR & RIDCOR), Tamil Nadu (TNRDCL) and West Bengal (with Haldia
Development Authority) for infrastructure project development.

We also take this opportunity to mention that IL&FS is the Executing Agency for
US$ 100 million under Private Sector Infrastructure Facility (PSIF)-II of the
Asian Development Bank (ADB) for assistance to the eligible projects in the
private sector in four selected states.
 19

II. IL&FS Group Road Sector Experience

(I) Sponsorship

(1) Rau Pitabpur Roll Road

Commissioned in November 1993, the Rau Pitampur road was the first toll
road in India. The project involved the strengthening of 11.5 km of an
existing 2-lane State Highway. The project connects the town of Rau with
the industrial city of Pitampur and has been domiciled in a Special Purpose
Vehicle (SPV), ‘MP toll Roads Limited’. The construction of the road was
completed within the scheduled time and within budgeted cost.

Project Cost: Rs. 6.61 Crore

(2) Vadodara Halol Toll Road

Commissioned in October 2000, the project envisaged the widening the
strengthening of 32 km of the existing 2-lane State Highway to a 4-lane
expressway connecting Vadodara with the industrial city of Halol. The
project has been domiciled in an SPV, ‘Vadodara Halol Toll Road Limited’.
The construction of the road completed within the scheduled time and
budgeted cost.

The project is a World Bank best practice example for Environmental Risk
Mitigation & Social Rehabilitation Plan.

Project Cost: Rs. 161.1 Crore

(3) Delhi – Noida Toll Bridge

The Delhi-Noida Toll Bridge connects South Delhi with Noida. The project
includes a 550 metre, eight-lane bridge over the river Yamuna along with
the approach roads in the South Delhi and Noida end. Commissioned in
February 2001, the Delhi Noida toll bridge is amongst the first large private
sector initiatives in the surface transport sector in India. This is also the
only Greenfield project of its size in India that has been completed in PPP
outside budgetary resources, the project was commissioned forth months
ahead of schedule.

IL&FS has received ‘best practice’ recognition in terms of the construction

practices followed.

Project Cost: Rs. 408.2 Crore

 20

(4) Ahmedabad Mehsana Toll Road

The Project involved four laning of 52 km of the existing State Highway
linking Ahmedabad and Mehsana, undertaken by Ahmedabad Toll Road
Company Limited (AMTRL). The State Highway links Ahmedabad, the
commercial capital of Gujarat, to Mehsana, an important oil town to the
north. The road caters to significant levels of commercial traffic movement
between Gujarat and parts of North India.

Commissioned in February 2003, the project was completed 8 months

ahead of schedule and within budgeted cost.

Project Cost: Rs. 323.05 Crore

(5) East Coast Road
The Tamil Nadu Road Development Corporation implemented the
rehabilitation and maintenance of the 113.2 km East Coast Road between
the cities of Chennai and Pondicherry. The SPV is a joint venture of IL&FS
and the Tamil Nadu Industrial Development Corporation Limited – a
Government of Tamil Nadu entity. The project was commissioned in March
2002.

The ECR showcases state-of-art developments in road construction

technologies. The project was completed within 90% of estimated time
frames and budgets.

Project Cost: Rs. 61.00 Crore

(6) North Karnataka Expressway

The Belgaum-Maharashtra Border Road falls on the NH-4, high-traffic
density corridor connecting, Chennai, Bangalore, Pune and Mumbai. The
project commenced on June 20, 2002 with December 19, 2004 set as the
project completion date.

The project achieved provisional completion five months ahead of

schedule, on July 19, 2004. The entire stretch has been opened to traffic.

Project Cost: Rs. 542.32 Crore

(7) The Narmada Toll Bridge
Narmada Infrastructure Construction Enterprise implemented the
construction and operation of a two-lane toll bridge at Zadeshwar across the
River Narmada alongwith the approach roads on the National Highway-8.
The project was commissioned in November 2000.

Project Cost: Rs. 144.05 Crore

 21

(8) Thiruvananthapuram City Roads Improvement Project

Thiruvananthapuram Road Development Corporation Limited (TRDCL),
the Consortium of ITNL and PLL have been awarded the first intra-city
Road Improvement Project in the country. The project envisages the
improvement of the 42 km city road network, spanning 13 corridors, 63
junctions, two flyovers and a underpass in Thiruvananthapuram.

Financial Close for the Project was achieved in a record 30 days. The
project is scheduled for commissioning in July 2006.

Project Cost: Rs. 221.39 Crore

(9) Western Freeway Sea Link Project
IL&FS and Maharashtra State Road Development Corporation
(representing the Government of Maharashtra) have entered into an
agreement for developing the Worli-Nariman Point section of the Western
Freeway Link Project. The project is to be sub-divided into six major links
aggregating 14.77 km. To be implemented as a toll facility, the sea link
route will have major cable stayed bridges and short-term span stayed
bridges.

Project Cost: Rs. 2000 – 2500 Crore

(10) Kerala High Speed Corridor Project

The Government of Kerala (GoK) is developing a 525 km, Access
Controlled High Speed Corridor (HSC) traversing the State from North to
South connecting Kasargod and Thiruvananthapuram on a commercial
format. GoK is also considering the development of Activity Nodes –
industrial and commercial centers along te proposed corridor. The project is
to be taken up in three phases, spread over 15 years.

IL&FS Government of Kerala are in the process of incorporating a SPV to

undertake the activity. Based on the financial viability the project is to be
implemented in three phases.

Project Cost: Rs. 2500 Crore (Estimated)

(11) Kotakatta – Kurnool Road Project

Design, Construction, Development, Finance, Operation and Maintenance
of “Km 135.469 (End of proposed Kotakatta Bypass) to km 211.00
(Kurnool), covering 74.651 kilometers” on NH-7 on BOT Annuity basis in
the State of Andhra Pradesh. The Concession has been awarded to the
Consortium of Infrastructure Leasing & Financial Services Limited and
 22

IL&FS Transportation Networks Limited. The SPV has been formed in the
name of Andhra Pradesh Expressway Limited (APEL). The Concession has
been awarded to APEL for a period of 20 years from the commencement
Date including construction period of 30 months.

Project Cost: Rs. 745 Crore

(12) Rajkot – Jetput – Gondal Project
The project envisages conversion of Jetput – Gondal – Rajkot and Rajkot
Bypass section of NH-8B an access controlled four-lane highway with
service lanes along certain sections and strengthening of the existing lanes
and improvements to Gondal – Rajkot section. The Project is promoted by
Infrastructure Leasing & Financial Services Limited (IL&FS) and IL&FS
Transportation Networks Limited (ITNL). A Special Purpose Vehicle
(SPV), “West Gujarat Expressway Limited” (WGEL), would implement the
project. WGEL, the Concessionaire, would implement, operate and
maintain the Project facilities for a total period of 20 years.

Project Cost: Rs. 240 Crore

(II) Advisory

(1) The Second Vivekananda Toll Bridge Project

The project envisages a 6.1 km, integrated 6-lane bridge alongwith
approach road network over the River Hoogly, 50 metres downstream of
the present Vivekananda Bridge. The project bridge will connect NH2 –
NH6, Durgapur Expressway on the West Bank with NH34 – Nh35,
Beghoria Expressway and the Netaji Subhash Chandra Bose Airport on the
East Bank. The project is scheduled for completion by 2007.

Project Cost: Rs. 646.88 Crore

Rolle of IL&FS
Merchant Banker
Lenders’ Engineer
Project Advisor

(2) Pune – Sirur Toll Road

The project envisages the widening and strengthening of 54 km of the 2-
lane State Highway connecting Pune with Sirur to a 4-lane corridor. The
SPV involved in Ashoka Infrastructure Private Limited (AIPL). The project
is expected to commission by May 2005.

Project Cost: Rs. 137.52 Crore

 23

Role of IL&FS
Merchant Banker
Lenders’ Engineer
Project Adviser
Toll Auditor

(3) Nashik – Niphad Toll Road

The project, connecting the city of Nashik with Niphad, envisages the
upgrading, strengthening and widening of 22 km of an existing 5.5 – 7 m
State Highway to a 7 – 12 m corridor. The project has been domiciled in a
Special Vehicle under the name and style of I.S. Infrastructure and
Buildcon Private Limited (ISIBPL). The project was commissioned in
February 2004.

Project Cost: Rs. 16.55 Crore

Role of IL&FS
Merchant Banker
Lender’s Engineer
Project Advisor
Toll Auditor

(4) Jabalpur – Narsinghpur – Piparia Toll Road

The project connecting Jabalpur with Piparia Envisages the reconstruction,
strengthening, widening and rehabilitation of 140 km of a single lane State
Highway to a 5.5 m corridor. The project is expected to commission by
December 2004.

Project Cost: Rs. 80.72 Crore

Role of IL&FS
Merchant Banker
Lenders’ Engineer
Project Advisor
Toll Auditor

(5) Jas Toll Road

The project envisages the widening and rehabilitation of 32.5 km of a 2-
lane National Highway (NH-4) to a 4-lane corridor with a provision of six-
laning. The project was commissioned in April 2004.

Project Cost: Rs. 221.72 Crore

 24

Role of IL&FS
Merchant Banker
Lenders’ Engineer
Toll Auditor

(6) Karnataka Road Development Corporation Limited - Bridges

Karnataka Road Development Corporation Limited (KRDCL) has been
mandated by the Government of Karnataka to finance, build, operate and
maintain 80 Bridges with recovery of the investments through toll charges
at the various locations across the State.

Role of IL&FS

IL&FS has been mandated to develop a Tolling Program to enable

KRDCL to recover the investment on these bridges.

(7) Dewas Bypass Toll Road

The project envisages the construction of a 19.80 km two-lane cement
concrete road from km 159/400 of Bhopal – Ujjain Road (State Highway –
18) to km 577/600 of Agra – Mumbai Road (National Highway – 3).
Estimated to cost Rs. 56.50 crore, the project was commissioned in May
2004.

Role of IL&FS
Lenders’ Engineer

Project Cost: Rs. 56.5 Crore

(8) Nanded City Roads Project

As part of the city development initiatives for upgrading the infrastructure
within the city and peripheral areas around it, the city of Nnaded has
identified projects for implementation. Nanded is among the list of eligible
cities shortlisted for grant assistance under the proposed Jawaharlal Nehru
Urban Renewal Mission (NJJURM). IL&FS has been appointed as the
programme manager and will provide all services to Municipal Corporation
of Nanded related to Financial Appraisal and advice regarding funding of
the Projects as well as their implementation and each of its various
Constituents projects, as required by Municipal Corporation of Nanded.
ITNL has been mandated by IL&FS to monitor the reparation of DPR and
construction supervision during construction stage.
 25

Annexure IV : State Specific Road Companies

(I) Road Development Corporation of Rajasthan

(1) Introduction
Road Development of Corporation of Rajasthan Ltd (RIDCOR),
incorporated in October 2004, is a 50:50 Joint Initiative of Government of
Rajasthan (GoR) and IL&FS.

RIDCOR is managed by a high powered Board comprising three nominees

from GoR, three nominees from IL&FS and one independent director
reflecting the Company’s public – private partnership identity.

(2) The Mega Highway Project

(a) As part of the ‘Mega Highway Project’, Government of
Rajasthan has proposed to improve the following important
North-South road corridors/road stretches, aggregating to 1053
km of two lanes with paved/hard shoulder configuration
including provision of bye-passes, Road Over Bridges and
geometric improvements wherever found economically feasible:

Name of Corridor Length (Km)

Phalodi to Ramji Ki Gol 292
Hanumangarh to Kishangarh 407
Alwar To Sikandra 81
Lalsot to Kota and Baran to Jhalawar 273
Total 1053

(b) The Mega Highways Project is the single largest road sector
project in the country taken up under Public-Private Partnership
(PPP) framework. The Project is expected to emerge as a
benchmark for development of roads in the PPP framework and
would also position Rajasthan as the most favoured investment
and tourism destination in the country.

(II) Tamil Nadu Road Development Company

(1) Introduction
Tamil Nadu Road Development Company Ltd. (TNRDC),
incorporated in May 1998, is a 50:50 Joint Initiative Tamil Nadu
Industrial Development Corporation Ltd. (TIDCO), the
investment arm of Government of Tamil Nadu (GoTN) and
IL&FS.
 26

TNRDC was set up with the mandate of developing road sector

initiatives by catalyzing private sector resources and investments
under Public-Private Partnership (PPP) framework.

TNRDC is managed by a high powered Board comprising three

nominees from TIDCO, three nominees from IL&FS and three
independent directors reflecting the Company’s public-private
partnership identity.

East Cost Road (ECR) is an important tourism road corridor in

Tamil Nadu connecting Chennai with Cuddalore through
Pondicherry. The road was formed in 1998 under an Asian
Development Bank funded project. Within two years of its
formation, ECR started showing signs of distress adversely
affecting its service quality, Prevalence of dangerous curves and
other geometric deficiencies led to occurrence of number of
accidents.

Note:

This is a re-composed version of the papers forwarded by NEC.